Binance is set to face off against the U.S. Securities and Exchange Commission (SEC) in a Washington courtroom next week, marking another significant hearing involving the regulatory agency and a cryptocurrency exchange. This hearing could potentially establish the regulatory framework for cryptocurrencies. 
The world’s largest cryptocurrency exchange has previously sought to dismiss a lawsuit filed by the SEC in June, alleging that Binance violated its rules. On Monday, the exchange is expected to present its case for dismissal before federal Judge Amy Berman Jackson. 
The SEC accuses Binance, its CEO Changpeng Zhao, and its U.S. arm of various misconduct, including artificially inflating trading volumes, diverting customer funds, failing to restrict U.S. customers, and providing misleading information about market surveillance controls. 
Additionally, the SEC alleges that Binance unlawfully facilitated the trading of several crypto tokens considered unregistered securities. Originally scheduled for Friday, the hearing was postponed due to snow in the Washington, D.C., area and has been rescheduled for Monday, January 22 at 10 a.m. EST. 
This hearing follows a recent SEC case against another U.S. crypto exchange, Coinbase, which faced similar accusations of trading unregistered cryptocurrencies. Both cases play a crucial role in shaping the SEC’s authority over the crypto sector. 
BAM Trading, the operator of Binance.US, contends in court filings that the SEC lacks the authority to oversee crypto assets, echoing a similar argument made by Coinbase in its bid for dismissal. Binance asserts that the SEC has not demonstrated evidence of fraud on its part. 
While Binance settled with other regulatory agencies, including the Department of Justice and Commodity Futures Trading Commission, over illicit finance breaches, it has resisted settling with the SEC. Settling would entail conceding that the tokens in question are securities, potentially impacting Binance’s business model. The exchange is choosing to contest the SEC’s allegations in court, asserting that the regulatory agency is overreaching its jurisdiction and has not proven fraud. 
The SEC’s lawsuit against Binance is part of a series of cases the regulator has initiated against cryptocurrency firms, shifting its focus from token-issuing companies to those offering trading platforms and broker-dealer services. Despite previous successes, the SEC faced a partial loss in a notable case against Ripple, another cryptocurrency company, last year. 
The post <a rel="nofollow" href="https://www.unlock-bc.com/116397/binance-to-defend-against-sec-allegations-in-courtroom-battle/">Binance to Defend Against SEC Allegations in Courtroom Battle</a> appeared first on <a rel="nofollow" href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.

Binance to Defend Against SEC Allegations in Courtroom Battle

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